Bangladesh faces economic instability amid inflation and low credit growth

Bangladesh is facing significant economic challenges, including high inflation, declining private-sector credit, and shrinking job markets. Reports indicate that imports of capital machinery, medical equipment, and heavy machinery at Chattogram Port fell by 45 per cent between the 2021-22 and 2024-25 periods. Private-sector credit growth reached a 33-year low of 4.62 per cent in June 2026.

While the World Bank noted a 7.1 per cent GDP growth in 2022, more recent figures show a slowdown, with 3.5 per cent growth in 2025. The Asian Development Bank projects inflation to remain high, forecasting annual averages of 8.7 per cent for 2025-26 and 9.0 per cent for 2026-27.

Strengthening ties with India is viewed as a potential way to ease these struggles, as previous cooperation provided essential supplies and raw materials during supply-chain constraints. Additionally, there are concerns regarding the country's economic priorities, as large-scale spending on infrastructure and defense projects may be sidelining measures to address rising poverty and widening inequality.